[Introduced January 20, 2012; referred to the Committee on
Pensions; and then to the Committee on the Judiciary.]

____________

A BILL to amend and reenact §7-14D-12 of the Code of West Virginia,
1931, as amended, relating to modifying the Deputy Sheriff
Retirement System to allow a retirant, upon divorce, to change
the retirement benefit options under certain circumstances.

Be it enacted by the Legislature of West Virginia:

That §7-14D-12 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:

ARTICLE 14D. DEPUTY SHERIFF RETIREMENT SYSTEM ACT.

§7-14D-12. Annuity options.

Prior to the effective date of retirement, but not thereafter,
a member may elect to receive retirement income payments in the
normal form, or the actuarial equivalent of the normal form from
the following options:

(a) Option A -- Joint and Survivor Annuity. -- A life annuity
payable during the joint lifetime of the member and his or her
beneficiary who is a natural person with an insurable interest in
the member’s life. Upon the death of either the member or his or
her beneficiary, the benefit shall continue as a life annuity to
the survivor in an amount equal to fifty percent, sixty-six and
two-thirds percent, seventy-five percent or one hundred percent of
the amount paid while both were living as selected by the member.
If the retiring member is married, the spouse shall sign a waiver
of benefit rights if the beneficiary is to be other than the
spouse.

(b) Option B -- Contingent Joint and Survivor Annuity. -- A
life annuity payable during the joint lifetime of the member and
his or her beneficiary who must be a natural person with an
insurable interest in the member’s life. Upon the death of the
member, the benefit shall continue as a life annuity to the
beneficiary in an amount equal to fifty percent, sixty-six and
two-thirds percent, seventy-five percent or one hundred percent of
the amount paid while both were living as selected by the member.
If the beneficiary dies first, the monthly amount of benefits may
not be reduced, but shall be paid at the amount that was in effect
before the death of the beneficiary. If the retiring member is
married, the spouse shall sign a waiver of benefit rights if the
beneficiary is to be other than the spouse.

(c) Option C -- Ten Years Certain and Life Annuity. -- A life
annuity payable during the member’s lifetime but in any event for
a minimum of ten years. If the member dies before the expiration
of ten years, the remaining payments shall be made to a designated
beneficiary, if any, or otherwise to the member’s estate.

(d) Option D -- Level Income Annuity. -- A life annuity
payable monthly in an increased amount "A" from the time of
retirement until the member is social security retirement age, and
then a lesser amount "B" payable for the member’s lifetime
thereafter, with these amounts computed actuarially to satisfy the
following two conditions:

(1) Actuarial equivalence. -- The actuarial present value at
the date of retirement of the member’s annuity if taken in the
normal form must equal the actuarial present value of the term life
annuity in amount "A" plus the actual present value of the deferred
life annuity in amount "B"; and

(2) Level income. -- The amount "A" equals the amount "B" plus
the amount of the member’s estimated monthly social security
primary insurance amount that would commence at the date amount "B"
becomes payable. For this calculation, the primary insurance
amount is estimated when the member applies for retirement, using
social security law then in effect, using assumptions established
by the board.

In the case of a member who has elected the options set forth
in subdivisions (a) and (b) of this section, respectively, and
whose beneficiary dies prior to the member’s death, the member may
name an alternative beneficiary. If an alternative beneficiary is
named within eighteen months following the death of the prior
beneficiary, the benefit shall be adjusted to be the actuarial
equivalent of the benefit the member is receiving just after the
death of the member’s named beneficiary. If the election is not
made until eighteen months after the death of the prior
beneficiary, the amount shall be reduced so that it is only ninety
percent of the actuarial equivalent of the benefit the member is
receiving just after the death of the member’s named beneficiary.

(e) (1) In the case of a member who has elected an option set
forth in subdivision (a) or (b) of this section, and designated his
or her spouse as beneficiary, upon divorce, the retirant may elect
to change the retirement benefit options offered by those
subdivisions to a life annuity in an amount adjusted on a fair
basis to be of equal actuarial value of the annuity prospectively
in effect relative to the retirant at the time the option is
elected: Provided, That the retirant furnishes to the board
satisfactory proof of entry of a final decree of divorce or
annulment: Provided, however, That the retirant certifies under
penalty of perjury that no qualified domestic relations order,
final decree of divorce, or other court order that would restrict
the election is in effect: Provided further, That no cause of
action against the board arises or may be maintained on the basis
of having permitted the retirant to name a new spouse as annuitant
for any of the survivorship retirement benefit options.

(2) Upon remarriage, a retirant may name the new spouse as an
annuitant for any of the retirement benefit options offered by
subdivision (a) or (b) of this section: Provided, That the
retirant shall furnish to the board proof of marriage: Provided,
however, That the retirant certifies under penalty of perjury that
no qualified domestic relations order, final decree of divorce or
other court order that would restrict the designation is in effect:
Provided further, That no cause of action against the board arises
or may be maintained on the basis of having permitted the retirant
to name a new spouse as annuitant for any of the survivorship
retirement benefit options. The value of the new survivorship
annuity shall be the actuarial equivalent of the retirant's benefit
prospectively in effect at the time the new annuity is elected.

NOTE: The purpose of this bill is to modify the Deputy
Sheriff Retirement System to allow a retirant, upon divorce, to
change the retirement benefit options under certain circumstances.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.